Bluebird Merchant Ventures Ltd (LON: BMV) shares advanced as it revealed it had bought the rest of the Batangas gold project in the Philippines.
It issued 1.25mln Bluebird shares and a 1% NSR (net smelter royalty) to ASX listed Red Mountain Mining to secure the acquisition.
Bluebird previously held a 25% stake in the site, which has an established JORC resource of 445,000 ounces of gold.
The project has a maiden reserve of 128,000 ounces of gold (including silver credits) which included 100,000 ounces at 4.2g/t (grammes per tonne) gold.
A pre-feasibility study that showed the project would produce a free cash flow (after capital costs) of A$46million based on the maiden reserve.
The project has an additional 320,000 ounces of majority JORC Inferred resources that are available for future conversion.
Bluebird shares added 5.88% in London to 2.25p.